Placing Channels on Cryptocurrency Charts on the MT4 Platform
The third option on the insert menu on the MT4 software is the channels button. Channels button key is used to insert various types of channels on Bitcoin charts in MT4 platform. The channels button is shown below.
Menu Button for Placing Various Channel Tools on the MT4 Platform
The channels that can be set on the crypto charts are shown on the channels button menu are:
- Bitcoin Trading Fibonacci Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different technical analysis & are drawn differently on the MT4 Bitcoin charts.
Bitcoin Trading Fibonacci Channels
Fibo Channels is a type of channel that is automatically drawn by this Fibo Channels button key, To draw these Fibonacci channels, a trader selects 2 points where to draw the same way a bitcoin trend line is drawn on the MT4 platform, once this bitcoin trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first bitcoin trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the price reaches these points.
Fib areas used to plot these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are first two channels as illustrated & shown below:
Placing Fibonacci Channels on MetaTrader 4 Bitcoin Charts
Linear Regression Channels
Linear regression channels are self adjusting channels, which adjusts as the channel is plotted from point 1 to point 2, linear regression channels then form what is similar to a bitcoin trading price boundary, this bitcoin trading price boundary shows upper & lower bitcoin trading price boundary and the center point which is the mean for the bitcoin trading price.
These upper and lower channels are used to open trades & close trades and also determine the levels to take profits or set stops for cryptocurrency trades. Linear regression channels are illustrated below:
Placing Linear Regression Lines on MT4
Equidistant Channels
The equidistant channels is the most oftenly used channel in bitcoin trading. On the MT4 platform, a trader can draw an upward channel or downward channel, the cryptocurrency trading example illustrated below shows an upward Cryptocurrency channel, once the lower channel is drawn ( bitcoin trend line), the top channel is automatically drawn, a trader can then double click the upper channel to adjust it so that it touches the highest high of bitcoin trading price as shown below - the next time bitcoin trading price touches this line the buy trade will then be closed and profit taken. As shown below this was the best bitcoin trading price to take profit when bitcoin trading price in the upward bitcoin trend touched the upper channel.
Placing Equidistant Channels on MT4
Standard Deviation Channels
Standard Deviation channel is similar to Linear Regression channel & it is also used to set the upper & lower boundaries within which price should move along within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MT4
